Which of the following types of software licenses requires the user to pay yearly?

AffiliatePal is reader-supported. When you buy through links on our site, we may earn an affiliate commission.



When it comes to software licenses, there are various types that determine how users can utilize the software. Some licenses require a one-time payment, while others may require ongoing payments. In this article, we will explore the different types of software licenses and identify which ones require users to pay yearly.

Perpetual Licenses

Perpetual licenses are one of the most common types of software licenses. These licenses grant users the right to use the software indefinitely, without any time restrictions. With perpetual licenses, users typically make a one-time payment to acquire the license, and they can continue using the software for as long as they want without any additional charges. Therefore, perpetual licenses do not require users to pay yearly.

Subscription Licenses

Subscription licenses are a type of software license that requires users to pay on a recurring basis, usually yearly. With a subscription license, users pay for the right to use the software for a specific period, typically one year. At the end of the subscription period, users need to renew their license by paying the subscription fee again. This model allows users to use the latest version of the software and often includes support and updates during the subscription period. Examples of software that commonly use subscription licenses include cloud-based services like Microsoft Office 365 and Adobe Creative Cloud.

Software as a Service (SaaS)

Software as a Service (SaaS) is a software licensing and delivery model where the software is hosted centrally and accessed by users over the internet. SaaS applications are typically provided on a subscription basis, requiring users to pay a recurring fee, often yearly, to access and use the software. This subscription fee covers not only the software itself but also the infrastructure, maintenance, and support provided by the service provider. Popular examples of SaaS applications include Salesforce, Dropbox, and Slack.

Freemium Licenses

Freemium licenses are a unique type of software license that offers both free and premium versions of the software. The free version provides basic functionality, while the premium version offers additional features and capabilities. Users can choose to use the free version indefinitely without any payment. However, if they want to access the premium features, they need to upgrade to a paid version, which often requires a yearly subscription fee. Freemium licenses are commonly used in mobile applications and online services, such as Evernote and Spotify.


In conclusion, while there are various types of software licenses, the types that require users to pay yearly include subscription licenses, Software as a Service (SaaS) models, and freemium licenses with premium features. Perpetual licenses, on the other hand, do not require users to pay yearly as they grant indefinite usage rights with a one-time payment. Understanding the different types of software licenses can help users make informed decisions about which licensing model best suits their needs.


– Microsoft Office 365: office.com
– Adobe Creative Cloud: adobe.com
– Salesforce: salesforce.com
– Dropbox: dropbox.com
– Slack: slack.com
– Evernote: evernote.com
– Spotify: spotify.com